EnLink Midstream announces new projects

From Staff Reports

Published 1:52 pm, Monday, August 18, 2014

DALLAS — The EnLink Midstream companies, EnLink Midstream Partners LP and EnLink Midstream LLC announced two new growth projects that will expand EnLink Midstream’s footprint in the Permian Basin and south Louisiana.

These investments will complement EnLink Midstream's existing asset footprint and offer enhanced midstream services to producer customers in these regions.

Expansion in West Texas, supported by Devon production

The partnership will expand its natural gas gathering and processing system in the Permian Basin by constructing a new natural gas processing plant and expanding its rich gas gathering system. The entire expansion project is expected to cost over $200 million, increasing the partnership’s total invested capital in the Permian to over $400 million.

The new 120 million cubic feet per day (MMcf/d) gas processing plant will be strategically located near the partnership’s existing midstream assets and will offer additional gas processing capabilities to producer customers in the region, including Devon Energy. The processing plant is expected to be operational in the second half of 2015. Upon completion, the partnership’s total operated processing capacity in the region will be approximately 240 MMcf/d.

As a part of the expansion, the partnership has signed a long-term, fee-based agreement with Devon Energy to provide gathering and processing services for over 18,000 acres under development in Martin County, one of the premier production locations in the Midland Basin. The partnership will construct multiple low pressure gathering pipelines and a new 23-mile, 12-inch high pressure gathering pipeline that will tie into the previously announced Bearkat natural gas gathering system. The new pipelines are expected to be operational in the first quarter of 2015.

Joint venture to construct South Louisiana NGL pipeline extension

The partnership also entered into a series of agreements with MPL Investment LLC, a subsidiary of Marathon Petroleum Corporation, to create a 50/50 joint venture named Ascension Pipeline Company LLC. This joint venture will build a new 30-mile natural gas liquids (NGL) pipeline connecting the partnership’s existing Riverside fractionation and terminal complex to Marathon Petroleum’s Garyville refinery located on the Mississippi River. The bolt-on project to the partnership’s Cajun-Sibon NGL system is supported by long-term, fee-based contracts with Marathon Petroleum. Under the arrangement, the partnership will serve as the construction manager and operator of the pipeline project, which is expected to be operational in the first half of 2017.

“Earlier this year we outlined our growth strategy to reach our goal of doubling the company’s size by the end of 2017,” said Barry E. Davis, EnLink Midstream’s president and chief executive officer. “These are exactly the types of projects we identified that will help us reach our objectives.”